Primary Market Flashcards

1
Q

What is the role of the primary market?

A

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2
Q

What is meant by face value of a share/debenture?

A

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3
Q

What do the terms Premium and Discount mean in the security market?

A

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4
Q

Why do companies need to issue shares to the public?

A

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5
Q

What are the different kinds of issues? Explain Initial Public offering and Follow-on Public offering.

A

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6
Q

Explain Rights issue.

A

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7
Q

Explain preferential issue.

A

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8
Q

What is meant by issue price and market capitalization?

A

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9
Q

Differentiate between public issue and private placement.

A

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10
Q

What is an IPO?

A

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11
Q

Who decides the price of an issue?

A

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12
Q

How is price discovery through book building process done?

A

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13
Q

Differentiate between book building and normal public issue.

A

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14
Q

What is a cut-off price and floor price?

A

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15
Q

What is a price band in a book built IPO?

A

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16
Q

Who decides the price band? - Can individual investor use book building facility to make an application?

17
Q

How does one know if shares are allotted in an IPO for sale? What is the timeframe for getting refund if shares aren’t allotted?

18
Q

How long does it take to get the shares listed after issue? What is the role of a Registrar to an issue?

19
Q

Does NSE provide any facility for IPO?

20
Q

List the advantages offered by book building through NSE system.

21
Q

What is a prospectus?

22
Q

What does draft offer document mean? What is an abridged prospectus?

23
Q

Who prepares the prospectus/offer documents?

24
Q

What does one mean by lock-in?

25
What is meant by listing of securities?
26
26
What is a listing agreement?
26
27
What does delisting of securities mean?
26
28
What is the SEBI's role in an issue?
26
29
Does it mean that SEBI recommends an issue?
26
30
Does SEBI tag make one's money safe?
26
31
Can companies in India raise foreign currency resources?
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32
What is American Depository Receipt?
27
33
What is ADS?
27
34
What is ADS used for?
27
35
What is Global depository receipt
27